With fresh new-construction brands -- Sleep Inn, Comfort lnn,
Comfort Suites and MainStay Suites -- and brands suited primarily for conversions --
Quality, Clarion, Rodeway Inn and Econo Lodge -- Choice is well-positioned with the right
brand to suit any business strategy in any economic cycle. The Company's strategic plan
calls for leveraging the strengths of each brand for the benefit of both the franchisees
and stockholders.

The strategic plan is guided by the principle that Choice's business portfolio includes
a bundle of trademarks and brands that range from older, mature assets to new and growing
ones.

This plank addresses the need to allocate resources to accelerate the growth of new
brands as well as to renew mature brands. Key strategies for implementing this plan are 1)
building trademark equity and 2) becoming more consumer-focused .

Aggressive initiatives will be undertaken to build Choice's portfolio of new and
renewed brands that lead the industry in consumer preference.

Specific initiatives by brand include:

Comfort Inns & Comfort Suites

For the 1998 fiscal year, Choice will research, develop and implement a marketing plan
to promote the Comfort trademark with a strong positioning as the leader in the
limited-service category.

Development efforts will be focused in smaller metropolitan areas where the Clarion
brand can compete most effectively. Choice will implement a 100 percent satisfaction
guarantee for the brand effective October 1997 and a consistent guaranteed meetings
program for participating Clarion hotels by Jan. 1,1998.

Sleep Inn

A marketing campaign for the coming year will promote the brand's number-one ranking
among all hotel chains for satisfaction, service and value, as rated by D.K. Shifflet
& Associates.

All development efforts will emphasize building more critical mass.

Econo Lodge

Choice is in the process of implementing a betterment image program for the Econo Lodge
brand that includes a 100 percent satisfaction guarantee for guests beginning Jan. 1,
1998, and systemwide completion of the Signature Exterior Renovation Program by June 1998.

The renovation program has been highly successful, improving RevPAR, or revenue per
available room, by 12.2 percent among the 153 hotels that have participated to date.

Rodeway Inn

The Rodeway Inn brand will continue to be positioned to consumers as "senior
friendly" and to independent operators as an outstanding franchise alternative.

Mainstay Suites

Plans to aggressively develop the MainStay Suites brand continue to be based on the
strong demand for mid-priced, high-quality, extended-stay lodging nationwide.